Ms. Jody Kuzenko reports

TOREX GOLD REPORTS THIRD QUARTER 2023 RESULTS

Torex Gold Resources Inc. has released the company's financial and operational results for the three- and nine-month periods ended Sept. 30, 2023. Senior management of Torex will host a conference call tomorrow morning at 9 a.m. ET to discuss the quarterly results. (All amounts are expressed in United States dollars unless otherwise stated.)

Jody Kuzenko, president and chief executive officer of Torex, stated:

"We expect to close out 2023 on a solid note with the fourth quarter forecast to be the strongest quarter of production, driven by higher open pit grades now that the period of elevated waste stripping is behind us. Our confidence in achieving full year production guidance of 440,000 to 470,000 ounces (oz) is supported by October gold production of 41,450 oz, which included 105 hours of planned maintenance in the process plant at the start of the month. With mining now into higher-grade benches in the open pit, the average gold grade processed during October averaged 4.05 grams per tonne (gpt) compared to 2.47 gpt during Q3.

"Despite the lower grades processed during the third quarter, operational and safety performance remained strong with the mill exceeding 13,000 tonnes per day (tpd) for the third quarter in a row, ELG Underground setting another record mining rate, and consistent recoveries despite the lower grades processed. On the safety front, there were no lost-time injuries during the quarter, and we exited the quarter with a lost-time injury frequency (LTIF) of 0.47 per million hours worked. In October, the ELG complex (excluding Media Luna) surpassed 10 million hours lost-time injury-free, the third time this milestone has been achieved since 2020.

"Full-year cost guidance has been revised higher given the ongoing strength of the Mexican peso along with the combination of higher-than-budgeted mining volumes and plant throughput with lower processed grades, which was due to the greater reliance on lower-grade stockpiles during the period of elevated waste stripping in Q2 and Q3. As a result, full year total cash costs1 guidance has been revised to $840 to $870 per oz gold sold and full year all-in sustaining costs1 revised to $1,160 to $1,200 per oz gold sold.

"Steady progress was made at Media Luna during the quarter with the project 49-per-cent complete at quarter-end. Underground development and construction are well underway and surface construction is tracking to plan. Advancement of the Guajes Tunnel continues to impress with breakthrough expected in late-December. While the overall project timeline remains intact, some expenditure has been pushed into 2024 and, as a result, we have lowered our full year capital expenditure guidance for Media Luna to $360[-million] to $390-million. With $501-million of liquidity (including $209-million in cash) and 15 months of ongoing free cash flow expected from ELG during the remaining project period, we are well positioned to fund the remaining $508-million of expenditures on Media Luna while maintaining at least $100-million on the balance sheet.

"With a couple of tough, low-grade quarters now behind us, we continue to deliver the level of operational excellence our shareholders have come to expect from us. As we continue to make progress on the Media Luna project, we look forward to a solid end of the year by delivering a strong fourth quarter and achieving annual production guidance for the fifth straight year."

Third quarter 2023 highlights

• Strong safety performance continues: Despite the substantial increase in activity during the quarter with the construction of the Media Luna project, there were no lost-time injuries (LTI) in the quarter. Exited the quarter with a LTIF rate of 0.47 per million hours worked on a rolling 12-month basis. On Oct. 18, the company reached 10 million hours worked without a LTI at its ELG mine complex for the third time since 2020.
• Hurricane Otis: In late October, the category 5 hurricane Otis made landfall near Acapulco, Mexico, approximately 300 kilometres from the ELG mine complex. The company's employees are safe and both the operations and assets are unaffected.
• Gold production: Delivered gold production of 85,360 oz for the quarter (YTD -- 315,785 oz) driven by the processing of lower grade and stockpiled ore during the intense stripping period associated with the layback at the El Limon open pit, partially offset by a record mining rate at ELG Underground of 2,321 tpd (YTD -- 1,993 tpd). With mining of the higher-grade benches started in late-September and gold production of 41,450 oz in October despite an extended planned shutdown, the company remains on track to meet annual production guidance of 440,000 to 470,000 oz.
• Gold sold: Sold 81,752 oz of gold (YTD -- 305,956 oz) at an average realized gold price1 of $1,944 per oz (YTD -- $1,932 per oz), contributing to revenue of $160.1-million (YTD -- $600.2-million).
• Total cash costs and all-in sustaining costs: Total cash costs of $1,086 per oz sold (YTD -- $858) and all-in sustaining costs of $1,450 per oz sold (YTD -- $1,257). All-in sustaining costs margin1 of $494 per oz sold (YTD -- $675), implying an all-in sustaining costs margin1 of 25 per cent (YTD -- 34 per cent). Cost of sales was $133.0-million (YTD -- $408.5 million) or $1,627 per oz sold in the quarter (YTD -- $1,335), impacted by the appreciation of the Mexican peso and the high-strip, low-grade phase of the open pit mine plan resulting in the lower average gold grade of ore processed. Given the continuing strength of the Mexican peso as well as the combination of higher-than-budgeted mine volumes (open pit and underground) and plant throughput with lower processed grades (greater reliance on lower grade stockpiles during Q2 and Q3), full year total cash costs guidance is now estimated at $840 to $870 per oz sold and full year all-in sustaining costs guidance is now estimated at $1,160 to $1,200 per oz sold.
• Net income and adjusted net earnings: Reported net income of $10.5-million or earnings of 12 cents per share on a basic basis and nine cents per share on a diluted basis (YTD -- $154.0-million, or $1.79 per share on a basic basis and $1.77 per share on a diluted basis). Adjusted net earnings of $11.1-million or 13 cents per share on a basic basis and 13 cents per share on a diluted basis (YTD -- $99.3-million, or $1.16 per share on a basic basis and $1.15 per share on a diluted basis). Net income includes a net derivative gain of $18.1-million (YTD -- $6.2-million gain) related to gold forward contracts entered into to mitigate downside price risk during the construction of the Media Luna project. In the third quarter of 2023, the company entered into a series of zero-cost collars whereby it sold call option contracts and purchased put option contracts for nil cash premium to hedge against changes in foreign exchange rates of the Mexican peso between September, 2023, and December, 2024, for a total notional value of $65.9-million. In October, 2023, the company entered into an additional series of zero-cost collars between October, 2023, and December, 2024, for a total notional value of $41.4-million.
• EBITDA (earnings before interest, taxes, depreciation and amortization) and adjusted EBITDA: Generated EBITDA of $79.4-million (YTD -- $307.2-million) and adjusted EBITDA of $61.2-million (YTD -- $299.6-million).
• Cash flow generation: Net cash generated from operating activities totalled $44.2-million (YTD -- $180.8-million) and $52.6-million (YTD -- $207.3-million) before changes in non-cash operating working capital, including income taxes paid of $12.0-million (YTD -- $104.2-million). Negative free cash flow of $69.7-million (YTD -- $161.1-million) net of cash outlays for capital expenditures, lease payments and interest, including borrowing costs capitalized.
• Strong financial liquidity: The company extended and increased the available credit facilities with a syndicate of international banks in the quarter, now providing a total of $300.0-million in available credit maturing in 2026. The quarter closed with net cash of $188.3-million, including $209.4-million in cash and $21.1 million of lease-related obligations, no borrowings on the credit facilities of $300.0-million and letters of credit outstanding of $7.9-million, providing $501.5-million in available liquidity.
• Media Luna project: Media Luna project expenditures totalled $98.7-million during the quarter (YTD -- $242.3-million), with a remaining project spend of $507.5-million. Expenditures during this period were primarily focused on continued development of the Guajes Tunnel and South Portals, with development of the Guajes Tunnel reaching 5,160 metres and South Portal Lower reaching 2,325 metres by end of the third quarter. As of Sept. 30, 2023, physical progress on the project was approximately 49 per cent, with detailed engineering, procurement activities, underground development and surface construction advancing. As of Sept. 30, 2023, the company had commitments in place for $591.2-million of project expenditures (approximately 68 per cent of total budgeted expenditures). With $242.3-million invested year to date and the level of spending expected to increase further in the fourth quarter of 2023, the full year Media Luna project expenditure guidance has been lowered to $360-million to $390-million reflecting the redistribution in timing of expenditures. Quarterly expenditures are expected to remain elevated through the third quarter of 2024 before declining with the commissioning of the upgraded processing plant.
• Exploration and drilling activities: In September, the company announced initial assay results from the 2023 drilling program at EPO2. Results from the 2023 program continue to highlight the potential to upgrade inferred resources to the indicated category and expand inferred resources through stepout drilling to the north and south of the deposit. Results from the 2023 program will be incorporated into the year-end mineral resource update and will form the basis of an internal study evaluating the feasibility of developing an economic mining front at EPO, which could leverage the infrastructure currently being developed for Media Luna, including the Guajes Tunnel. Over all, the positive results from the 2023 drilling program at EPO support continuing resource expansion and reserve growth, which in turn supports the company's strategic focus on filling the mill with higher-grade feed beyond 2027.

For more information on EPO drilling results, see the company's news release titled "Torex Gold Reports Results From 2023 Drilling at EPO" issued on Sept. 5, 2023, and filed on SEDAR+ and on the company's website.

Conference call and webcast details

The company will host a conference call tomorrow at 9 a.m. ET in which senior management will discuss the third quarter operating and financial results. Please dial in or access the webcast approximately ten minutes prior to the start of the call:

Toronto local or international:  1-416-915-3239

Toll-free (North America):   1-800-319-4610

A live webcast of the conference call will be available on the company's website. The webcast will be archived on the company's website.

About Torex Gold Resources Inc.

Torex is an intermediate gold producer based in Canada, engaged in the exploration, development and operation of its 100-per-cent-owned Morelos property, an area of 29,000 hectares in the highly prospective Guerrero gold belt located 180 kilometres southwest of Mexico City. The company's principal asset is the Morelos complex, which includes El Limon Guajes (ELG) mine complex, the Media Luna project, a processing plant and related infrastructure. Commercial production from the Morelos complex commenced on April 1, 2016, and an updated technical report for the Morelos complex was released in March, 2022. Torex's key strategic objectives are to optimize and extend production from the ELG mine complex, derisk and advance Media Luna to commercial production, build on environmental, social and governance excellence, and to grow through continuing exploration across the entire Morelos property.

Qualified person

The technical and scientific information in this press release has been reviewed and approved by Dave Stefanuto, PEng, executive vice-president, technical services and capital projects, of the company, and a qualified person under National Instrument 43-101.

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